Well it is about time. Finally reached USD 66K! I had actually expected Bitcoin to go to new all time highs at the beginning of this month but I am guessing there was still a lot of FUD around. But it is good to see Bitcoin going to such new highs. If you ask me, I think Bitcoin is currently undervalued quite significantly. And no, I am not a Bitcoin bull or some sort of maximalist. Just stating the facts here – the level of institutional interest and with the recent release of a futures backed ETF, how is it possible for Bitcoin to remain at such low levels? Those institutions are not purchasing Bitcoin in small amounts and most of them seem to be holding onto their Bitcoin portfolio. So with increased demand and less circulating supply, there will of course be upwards pressure on the price of Bitcoin. And it is actually a good thing for us retail investors. Even those who do not hold any Bitcoin. I am one of such investors. When Bitcoin price goes up, the rest of the crypto market goes up as well. If investors are confident seeing Bitcoin going up, the whole market turns bull.
As mentioned, I am not holding onto Bitcoin at the moment. My portfolio consists of only altcoins – primary XRP, ADA, VET, CAKE and a small amount of ETH. Yes I am holding onto Hi Dollar tokens as well. I will give you guys an update on my Hi Dollar token venture perhaps in a few weeks time. As for the rest, I am only planning to hold onto ADA. The rest I will most likely sell when the time is right. But as the crypto market is pumping right now, I will start to let go some of them soon. Again I would like to highlight the importance of the relationship between Bitcoin and other cryptocurrencies. Sure at times we will see a certain token pumping while the rest of the market is red. But this is something that happens far and few between. The cryptomarket is full of speculators and manipulators. So yes, there will always be tokens that go against the wind. But in most cases, Bitcoin dictates where the market is going.
So do you guys think that Bitcoin will reach 75K by the end of this month? Let me know what do you think down in the comments. If you ask me, I think it is doable. The market is just so bullish right now. A little good news and they start pumping already. However note that there might be a few black swan events that might just bring down the whole cryptomarket. Mostly from the SEC. They seem to be hell bent on bringing down the cryptomarket, or at least they are looking for ways to take control of this financial sector. So if you are planning to get into the crypto trading right now, do watch out for them. And don’t forget to take profits when possible. Don’t be too greedy. I made plenty of such mistakes already. You only HODL if you are planning to stay for the long haul.
Note that the Bitcoin ETF (Exchange Traded Funds) is not a spot ETF but a futures ETF. This means that these are actually contracts that will be fulfilled at a later date. Of course Bitcoin futures are related to the actual Bitcoin price but there might be differences. But in general, they tend to be going in the same direction. And seems like there are plenty more ETFs waiting for approval by the SEC. Some of which are spot ETFs. This means more and more money are being poured into Bitcoin and other cryptocurrencies. This is a good thing for us. That is why if you are thinking of investing in cryptocurrencies, you should do it early.
By the way I am not a financial advisor. You should always do your own research when it comes to investing. Don’t take the words of a blogger with your own life savings.
